like said above, run the component direct to the tv/monitor unless you do not have enough inputs [dvd, hdtv, ps2, xbox... ] then component switching is nice. also, some models that have the component inputs also do component upconverting, so if you are running an exotic display [projector/plazma/lcd... ] you can simplify your wiring to the display by just having one set of component wires going there instead of composite and s-video also...
i like my denon avr-5700...
just a note, dsp modes are junk, 5/7channel stereo is something that you will end up using often [if you have a large space... ]
i have a 2nd job where i deliever/install home theater systems and tv's on the weekend. the most often complaint is "how come there is no sound out of the rear speakers when listening to radio/cd/mp3/lp/cassette?" and i'll put it in a dsp mode or prologic and they complain about the echo/effect. then i'll tell them to get one with 5 channel stereo. all denon's have it, many others have it too... but if you like to have the room full of music, instead of sitting and listening to stereo, the 5 ch stereo is great